Cape Town’s economy continues to shine as one of SA’s strongest and most resilient. The city’s growth is driven by a diverse mix of sectors, including tourism, technology, green energy, business services, finance and manufacturing. With a track record of sound governance, skilled talent and a culture that celebrates creativity, Cape Town has evolved from being SA’s oldest city into one of Africa’s most dynamic business destinations – a place where ideas turn into innovation, and innovation drives inclusion.

Now the city is entering a new phase of growth, marked by bold investment in infrastructure and a renewed focus on economic participation for all.

Over the next three years, a record R39.7 billion will be invested under the City’s Invested in Hope budget, announced in 2025 by Executive Mayor Geordin Hill-Lewis. The plan is expected to create more than 130 000 construction-related jobs and fund critical projects in energy, transport, water, sanitation and housing – the foundations of a city determined to match its global appeal with long-term economic resilience.

Beyond tourism

Long celebrated as one of the world’s top tourism destinations, Cape Town is now setting its sights on becoming Africa’s leading business and innovation hub. Through Invest Cape Town, the City’s business brand, Mayoral Committee Member for Economic Growth Alderman James Vos and his team are leveraging the city’s global appeal (that is, its natural beauty, diverse talent and entrepreneurial culture) to attract investment and position Cape Town as a destination for growth. With Cape Town’s unique global reputation, the City is building on a strong foundation as a place where ideas thrive and people want to be.

At the centre of this growth strategy lies the Infrastructure Investment programme, the largest in the City’s history. Beyond maintaining existing infrastructure, the plan unlocks new opportunities for trade and innovation through upgraded transport networks, expanded water systems and improved energy resilience.

Projects include the extension of the MyCiTi bus service, upgrades to wastewater-treatment facilities and major investments in renewable-energy infrastructure. These are critical to keeping pace with population growth and maintaining Cape Town’s reputation as a reliable place to work, live and invest.

Businesses invest where services are dependable, but infrastructure is only as strong as the energy that powers it. That’s why the City’s Inclusive Economic Growth Strategy and Energy Strategy 2050 both prioritise building a reliable and sustainable energy future.

The City of Cape Town has allocated around R4.3 billion to electricity generation and distribution, which includes investments in energy projects such as PV solar plants, battery storage and the procurement of independent power producers. These investments support the goals outlined in the Energy Strategy 2050, which maps a path toward carbon neutrality and energy resilience for Cape Town.

Key economic sectors

Cape Town’s growth strategy prioritises high-potential sectors that align with both its natural strengths and global market trends – technology and AI, business process outsourcing (BPO), tourism, agribusiness, creative industries, renewable energy and advanced manufacturing. These sectors attract investment while creating inclusive employment opportunities.

As the city’s tech ecosystem has become one of the most active in Africa, the BPO industry continues to draw global companies attracted by Cape Town’s skilled workforce and competitive operating costs.

Making it easier to do business

Cape Town’s Ease-of-Doing-Business programme is a key part of the City’s growth agenda focused on cutting red tape, digitalising key services and speeding up approvals for entrepreneurs and investors.

In 2025, the city’s Ease-of-Doing-Business Index indicated significant improvements. The overall median processing time for building licences decreased to 45.1 days from 47.6 days in 2024. Concurrently, approved business plans saw a 5% year-over-year rise. These reforms successfully streamline business operations and enhance service delivery within the city.

Connecting globally, investing locally

Looking beyond city borders, strategic relationships have been cultivated through sister city partnerships with Munich, Houston, Nairobi and Rio de Janeiro, among others. The City is deepening collaboration in areas such as clean energy, digital innovation and urban design. These partnerships strengthen global trade and investment ties, while encouraging knowledge exchange that benefits residents and businesses alike.

In a recent podcast, Hill-Lewis described this as ‘proactive diplomacy’, explaining that international partnerships allow Cape Town to measure its progress against global peers and adopt best practices.

Amplifying the story of Cape Town

Launched in November 2025, the Invest Cape Town Ambassador programme is an initiative designed to amplify the city’s business story through influential voices. From 2026, 15 ambassadors – including David Green (V&A Waterfront CEO), Marlene le Roux (Artscape CEO) and Ryan Ravens (Accelerate Cape Town CEO) – will champion the City’s business brand globally, attracting investment and reinforcing its status as Africa’s business capital.

These ambassadors are diverse, world-facing, global connectors who reflect Cape Town’s innovative spirit. Their role is to open doors, spark ideas, and bring opportunity and investment home.

A city for all

Cape Town’s vision extends beyond infrastructure and investment. It’s about building a city that is sustainable, inclusive and globally competitive; one that combines opportunity with equity and growth with purpose. With strong leadership, global partnerships and a clear vision for inclusive growth, Cape Town is proving that African cities can be both beautiful and business-ready – a place where innovation meets opportunity, and progress serves all who call it home.

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